The National Financial Supervision Authority initiated explanatory proceedings – the target was Rafał Zaorski's group. This is about the “Trading Jam Session” and trading in Merlin Group shares. The Polish Financial Supervision Authority will investigate a failed cryptocurrency project from years ago. Does a famous trader and speculator have anything to fear?
Rafał Zaorski's group under the microscope of the Polish Financial Supervision Authority
On Tuesday, February 27, the Polish Financial Supervision Authority announced that explanatory proceedings were being initiated into trading in Merlin Group shares. This company provides services for online stores, however, the proceedings concern the cooperation of Merlin Group with Rafał Zaorski's “Trading Jam Session” group. We are talking about a failed cryptocurrency project from a few years ago, which resulted in a tern-worthy plunge in the share price.
The situation reviewed by the Polish Financial Supervision Authority concerns the beginning of July 2018. It was then that Rafał Zaorski's group announced the launch of a joint project with Merlin Group. The aim of this cooperation was to build a blockchain network and create a token. After signing the letter of intent, Merlin Group share prices quickly soared to above PLN 1,000. Then a systematic decline began. When the partnership ended seven months later, the share price plummeted like a spoon falling in the kitchen at 3 a.m. Ultimately, Merlin Group shares stopped at just a few cents.
What is the Polish Financial Supervision Authority looking for and what are the penalties if it finds something?
The Polish Financial Supervision Authority probably wants, above all, to find evidence of deliberate manipulation of share prices. However, proving this may be very difficult, because after the end of cooperation, Rafał Zaorski's Group announced that the project was a failure because “Merlin changed its priorities.” However, all traces that may prove otherwise will certainly be examined.
According to official information provided by the Polish Financial Supervision Authority, the proceedings will concern three key issues. Firstly, breaking the ban on unlawful disclosure of confidential information, which is punishable by up to PLN 2 million or 4 years in prison. The luckiest people get two penalties at once.
The second procedure is to find evidence of violation of the prohibition on using confidential information. In this case, the penalty increases to PLN 5 million or imprisonment from 3 months to 4 years. Similarly to the above, you can also receive two penalties at the same time. The last issue concerns violating the prohibition of unauthorized recommendations or inducements to purchase or sell financial instruments. The penalty is PLN 2 million, up to 4 years of imprisonment or a double package.
Will the proceedings of the Polish Financial Supervision Authority threaten the “epic flip”?
Rafał Zaorski's group is being examined by the Polish Financial Supervision Authority right after considerable media hype surrounding the “epic flip”. Of course, the point is to tokenize the property, which is the apartment at Złota 44. The residents of the luxurious skyscraper categorically do not agree to the sale of the apartment in the form of NFT tokens to thousands of people, arguing that it poses a risk of disturbing the peace in the building.
Can the proceedings of the Polish Financial Supervision Authority suspend or completely thwart plans to tokenize an apartment worth over PLN 20 million? It all depends on whether the Polish Financial Supervision Authority detects any irregularities during the proceedings. Nevertheless, Rafał Zaorski is in the media again.
